HomeMy WebLinkAboutCOM 0739.197 2016-2018off-. K
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From: Ted Klassen CU
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To: Council Testimony �J` 1�t , j�
Subject: Testimony Bill 108 �{{r� �"'"tO
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Date: Monday, July 09, 2018 11:52:28 AM
Aloha Hawaii County Council Members,
Mahalo for your continued efforts regarding this Bill.
For about 12 years, Kona Coast Vacations has voluntarily operated under Hawaii's Real Estate laws
trying to ensure our property owners, and their neighbors were respected. Many of the
professional managers in the County operated without issue and without neighbor concerns. Most
people have never heard of ours or many of the professional management companies operating in
the County, because of our method of operations.
We understand that this Bill is designed to address the "managers" that do not respond to issues. I
am still hoping; a clause can be added to address this situation where all "reachable persons" or
managers should be governed under the existing Hawaii Real Estate Laws. By suggesting a person is
reachable, you are granting anyone the right to represent a property owner. When those reachable
people represent more than one property owner, then they should be governed under the Real
Estate Act.
The current TA tax law has provided people with a loophole, were the on -island contact represents
more than one property owner and because the TA law does not specifically state on island contacts
can only represent one owner, this provides property owners and the "reachable person" or
manager to sidestep the real estate laws, while the claim to be operating as a local contact.
It appears currently, the County appointed person who will be responsible for enforcing this Bill will
focus only on this Bill. By providing them with additional clout, and wording in this Bill to ensure the
Bill 108 addresses all the applicable laws, you will assist in closing a loophole as well as keeping
neighbors and guests happy.
I believe this Bill may have some major unintended consequences regarding real estate values along
with longer term declines in property tax collections, reduced visitor arrivals/spending and declines
in GE and TA contributions. These reductions may require future property tax increases to offset the
declines.
I do support both amendments provided by council members Ruggles and O'Hara. Mahalo to you
all, for your contribution to the County.
Ted Klassen mba
Kona Coast Property Management LLC,
Dba Kona Coast Vacations
745565 Luhia Street, #101
Comm. No.
Ref. To: Ve
Ref. ®ate
Kailua Kona, HI
96740
808-329-2140
www.konacoastvacations.com